CEO Jukka Ruuska 15 February 2018 Asiakastieto Plc ...investors.asiakastieto.fi/wordpress/wp-content/uploads/2018/02/... · Asiakastieto Plc Financial Statements 1.1. –31.12.2017

Asiakastieto Plc

Financial Statements1.1. – 31.12.2017

CEO Jukka Ruuska15 February 2018

Asiakastieto Group Plc, CEO Jukka Ruuska, 15 February 2018 1

Contents

2

• Asiakastieto Group in Brief

• Highlights Q4 / 2017

• New Services 2017

• GDPR Update

• Digital Housing Company Data

• Overview of Q4 / 2017 Results

• Summary of Financial Statements Q4 / 2017

Asiakastieto Group Plc, CEO Jukka Ruuska, 15 February 2018

This is Asiakastieto

Agile already from 1905

VISIONThe Best Decisions

MISSIONTrust and Transparency

Scalable Business Model

Clients in the Core

• Asiakastieto is one of the leading informationservice houses in Finland• An agile and developing leader in the line

• Our vision is to offer the best knowledge baseand services for our clients’ decision-making in every situation

• Our mission is to facilitate transparencyand trust in business and to support prosperitythrough growth

• Scalable business model and high automation levelof business prosesses• Own database and strong database expertise

• Long standing of client relations• Integration into clients’ business prosesses

Consumercustomers

B2C customers

B2Bcustomers

3 Asiakastieto Group Plc, CEO Jukka Ruuska, 15 February 2018

Databaseas the Core of Business Operations

ASIAKASTIETO’SDATABASE

Databaseexpertise

Distribution CustomersServicedevelopment

DATABASEMaking unstructureddata utilisable

Data gathering

Digital channels

Consumer customers

B2B customers

B2C customers

Reviewing

Combining

Analysing

Public registers

Customers

Companies

Internet & social media

New services

Value added services


Product Area Structure

5

Business Information Services

Consumer Information Services

Customer Management Services

Real Estate and Collateral Information Services

Asiakastieto’s

Product Areas

Business Information Services 55,4 %

Consumer Information Services 27,8 %

Customer Management Services 9,2 %

Real Estate and Collateral Information Services 7,6 %


Average Numberof Personnel

153Asiakastieto’s

Key Figures2017

MEUR

Increase in Net Sales

14,3Adjusted EBITDA

24,8

Group’s Net Sales

56,2Free Cash Flow

20,3

%

MEUR

MEUR

Adjusted EBITDA margin

44,2 %


Review

New Services 2017


New Services Share of Net Sales

8

● Share of new services was 9,8%.

● Twelve new services launched during the fourth quarter.


Asiakastieto Group’s Service Development 2017

ComplianceServices

Services Basedon New Data

Services Relating to

Digitalizationof Processes

9

3D Decisioning Service

Quick Decision Service

ESG Report

Company Filter Pro & WebFilter

FATCA Service

Child Custody Check

Extended Scoring Solution

40 New Services Launched


Beneficial Owner

Sourcing and Procurement Service

P/E and P/B indicators

Omatieto Optimi Decision Service

Web Service for RE Trade for Municipalities

Right-of-use Unit Extracts of the Property

Consumer Risk Indicator 2.0

Renewed Bulding Information Reports

AI

Update

General Data Protection Regulation(GDPR)


GDPR service


• The service suits especially companies, whose customer data are

• On paper in paper files

• In Excel tables

• In an invoicing system

• Even in CRM

• Whether the customers are B2B or B2C customers, the regulation concerns also company files, which contain data on contact persons

• The service fulfils the requirements of GDPR and simultaneously helps the company to attend to its own valuable customer data

• The company can have multiple users

• Privacy policies relating to the files can be created through the service

• The service offers the data subjects a user interface for the inspection of data

• A file can be created only once, and thereafter maintained in a specified form

• In the future, data can also be imported automatically through the interface, for example, from an invoicing system

Asiakastieto’s GDPR service sees to the management of the customer’s external files with a solution, which meets the requirements accordant with GDPR.

11

GDPR service


How to benefit?

• The company does not need to interpret complex legal text, but the obligations are easily taken care of by implementing the service

• Checking the personal data does not require resources from the customer service

• Customer data stays regular, and changes can be reacted to fast

• Also the documentation of policies can be effortlessly managed through the service

12

New

Digital Housing Company Data


Digital housing company dataSERVICE AND BUSINESS MODEL

Shareholder, Housing Company

House Management

Services • Validation

• Analysis

• Enrichment

• Customer Service

• Distribution Channels

Banks

Real Estate Agents

Other Service Channels

DATA

Services

Housing Company Data

Services & Products

XYZ

Services

Services & Products

Services

Services

DATA

HOUSING COMPANYDATA SERVICE

14

Q4 / 2017

Overview


Overview of Q4 / 2017● Strong growth in Net Sales.

● 1 banking day less in Q4 than in corresponding period, 2 banking days less YTD.

● The EBITDA margin slightly higher than in corresponding period, both in Q4 and YTD.

EUR million (unless stated otherwise) Q4 / 2017 Q4 / 2016 FY 2017 FY 2016

Net Sales 14,6 12,6 56,2 49,2

Growth (year-on-year) 15,4 % 11,2 % 14,3 % 12,5 %

Adjusted EBITDA 5,9 5,1 24,8 21,7

Adjusted EBITDA margin 40,8 % 40,2 % 44,2 % 44,1 %

Adjusted EBIT 5,0 4,4 21,7 19,2

Adjusted EBIT margin 34,5 % 34,8 % 38,7 % 39,1 %

New products and services (% of Net Sales)

9,8 5,0 9,2 7,4

Value-added services (% of Net Sales) 67,5 66,9 69,2 65,4

EBITDA 5,7 5,0 24,3 22,5

EBIT 4,7 4,3 21,2 20,0


Quarterly Net Sales

● Net sales growth was 15,4%.

● Organic growth was particularly strong in Consumer Information (30,7%) and Customer Management (35,1%) product areas.

● The net sales growth of Customer Management was impacted by acquisition of Emaileri Oy.

EUR million


Net Sales Growth

Net sales growth(year-on-year)

18

● Impact of number of banking days: Q1 / 2017 three days more, Q2 / 2017 three days less, Q3 / 2017 one day less and Q4 / 2017 one day less than in corresponding period 2016.

● Net sales growth during 2017 YTD was 14,3 % compared to 2016.


Revenue by Product Area

+4,9 %

+30,7 %

+35,1 %

+20,1 %

EUR million

19

● Growth in all Product Areas.

● Net sales growth especially high in Customer Management due to Emaileri acquisition and organic growth.

● Very strong organic growth in Consumer Information and Real Estate and Collateral Information Services.


New Services Share of Net Sales

20

● Share of new services was 9,8%.

● Twelve new services launched during the fourth quarter.


Value-added Services Share of Net Sales

● Strong continued demand for value-added services.

● The share of value-added services decreasing in Q4 due to Emaileri services not considered as value-added services in current definition.

● Growth of new services contributes to growth of value-added services.


Adjusted EBITDA growth 17,1 %

EUR million


Free Cash Flow

EUR million ● Free cash flow continues to be at good level.


Strong Key Indicators

● Cash position of EUR 18,9 million.

● Net debt/adjusted EBITDA on low level of 2,1.

● Cash conversion high 95,3%.

● Gross investments 4,3 million YTD.

EUR million (unless stated otherwise) Q4 / 2017 Q4 / 2016 FY 2017 FY 2016

Net debt 51,1 47,0 51,1 47,0

Net debt / adjusted EBITDA 2,1x 2,3x 2,1x 2,2x

Gearing, % 63,0 59,9 63,0 59,9

Equity ratio, % 51,0 50,5 51,0 50,5

Free cash flow 5,4 4,6 20,3 17,2

Cash conversion, % 95,3 92,1 83,4 76,6

Gross investments 1,7 1,5 4,3 3,8


Long-term Targets and Guidance 2018

Note: (1) These targets are based on assumptions that may not prove to be correct and actual results may deviate significantly; (2) Subject to the business development and investment needs of the Company. Any dividends to be paid in future years, their amount and the time of payment will depend on Asiakastieto’s future earnings, financial condition, cash flows, investment needs, solvency and other factors; (3) This forward-looking statement is not a guarantee of future performance.

Financial targets1

Growth Achieve 5 to 10 percent annual average growth in net sales

Profitability Maintain profitability level of current services

Balance sheet structure Maintain net debt to EBITDA of less than 3,0x while continuing to maintain an efficient capital structure

Dividend policy2

Dividends Asiakastieto Group’s dividend policy is to distribute as dividends at least 70 per cent of the Company’s profit for the year annually.

Guidance3

Guidance for 2018 Asiakastieto Group expects its net sales growth rate to be at the higher end of the long-term target (5 - 10 %) and to maintain adjusted EBITDA margin at about the current level.


2/14/2018

Summary

Financial StatementsQ4 / 2017


Summary Income StatementEUR million Q4 / 2017 Q4 / 2016 FY 2017 FY 2016

Net sales 14,6 12,6 56,2 49,2

Other operating income 0,0 0,0 0,2 1,1

Materials and services -2,9 -2,4 -12,0 -9,2

Personnel expenses -3,6 -3,6 -12,6 -12,1

Other operating expenses -2,7 -2,1 -8,8 -7,9

Work performed by the entity and capitalised 0,3 0,4 1,3 1,3

Depreciation and amortisation -0,9 -0,7 -3,1 -2,5

Operating profit 4,7 4,3 21,2 20,0

Finance income and expenses -0,3 -0,3 -1,1 -1,1

Result before income tax 4,5 3,2 20,2 18,9

Income tax expense -1,0 -0,9 -4,1 -3,6

Result for the period 3,5 3,2 16,0 15,3

Earnings per share attributable to the owners of the parent during the period:

Basic and diluted earnings per share (EUR) 0,23 0,21 1,06 1,01


Summary Balance Sheet

EUR million 31.12.2017 31.12.2016

ASSETS

Goodwill 118,4 113,9

Other intangible assets 11,1 8,2

Property, plant and equipment 2,0 1,4

Deferred tax assets 1,6 3,0

Loan and other receivables 0,4 0,2

Total non-current assets 133,5 126,6

Account and other receivables 7,9 7,3

Cash and cash equivalents 18,9 22,6

Total current assets 26,8 30,0

Total assets 160,3 156,6

28

EUR million 31.12.2017 31.12.2016

EQUITY AND LIABILITIES

Share capital 0,1 0,1

Invested unrestricted equity reserve 112,4 112,4

Accumulated losses -47,4 -49,3

Result for the period 16,0 15,3

Total equity 81,1 78,5

Interest-bearing liabilities 69,8 69,7

Account and other payables 0,7 0,3

Total non-current liabilities 70,4 69,9

Advances received 1,4 1,3

Account and other payables 7,4 6,9

Total current liabilities 8,8 8,1

Total liabilities 79,2 78,1

Total equity and liabilities 160,3 156,6


29

EUR million Q4 / 2017 Q4 / 2016 FY 2017 FY 2016

Cash flows from operating activities Result before income tax 4,5 4,1 20,2 18,9Depreciation and amortisation 0,9 0,7 3,1 2,5Finance income and expenses 0,3 0,3 1,1 1,1Profit (-) / loss (+) on disposal of property, plant and equipment -0,0 -0,0 -0,2 -0,0Other adjustments 0,1 0,1 0,5 -0,8Change in working capital 1,4 0,9 0,0 0,1Interest and other finance expenses paid -0,3 -0,3 -1,0 -1,0Interest and other finance income received 0,0 0,0 0,0 0,0Income taxes paid -1,1 -0,0 -3,7 -0,0Net cash from operating activities 5,8 5,7 19,9 20,8

Cash flows from investing activities Purchases of property, plant and equipment -0,9 -0,1 -1,5 -1,1Purchases of intangible assets -0,9 -1,3 -2,9 -3,5Purchases of subsidiaries, net of cash acquired -6,0 -2,9 -6,0 -2,9Proceeds from sale of property, plant and equipment 0,0 0,0 0,3 3,6Purchase of investments - 0,0 - -0,1Non-current receivables -0,0 - 0,0 -0,1Net cash used in investing activities -7,7 -4,3 -10,0 -4,0

Cash flows from financing activities Short-term financing, net increase (+) / decrease (-) - -0,0 - -0,0Dividends paid and other profit distribution - - -13,6 -15,1Net cash used in financing activities - -0,0 -13,6 -15,1

Net increase / decrease in cash and cash equivalents -1,9 1,4 -3,7 1,6Cash and cash equivalents at beginning of the period 20,8 21,3 22,6 21,0Cash and cash equivalents at end of the period 18,9 22,6 18,9 22,6

Summary Cash Flow


Asiakastieto Plc

Financial Statements1.1. – 31.12.2017

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CEO Jukka Ruuska 15 February 2018 Asiakastieto Plc ...investors.asiakastieto.fi/wordpress/wp-content/uploads/2018/02/... · Asiakastieto Plc Financial Statements 1.1. –31.12.2017